Consumer-facing brands and products have become increasingly focused on
tailored or personalized offerings in recent years in response to
consumer appetite for bespoke services. Today, more than 50% of
customers offered UBI insurance models adopt it, and the vast majority
of American drivers (75%) reportedly would like insurance premiums to be
based on how safely they drive rather than generic factors such as
credit score, demographic information, or vehicle model.

The findings demonstrate that the opportunity for insurers to provide
customized insurance models is ripe – almost two thirds (64%) of drivers
claim to be willing to download a mobile app (like a Try Before You Buy
model) that tracks their driving for a more personalized insurance
quote. Today, there is still room for insurers to capitalize on this
demand since despite consumer appetite just over a quarter (27%) of
respondents have been offered a telematics-informed UBI program. The
total penetration of telematics in the U.S. insurance market remains
less than 10%– the two most popular insurance models are discount based
and pay how you drive programs.

Technological advancements in mobile sensing, IoT and artificial
intelligence today make it possible to deploy new business models and
services at scale, both to prevent
incidents and to respond more effectively in the event of an
emergency. The report finds that the vast majority of consumers are
interested in programs that will keep them and their families safer on
the roads. Over three-quarters (83%) of respondents claim they would be
more interested in an insurance company’s product if it offered tools to
keep their families safer on the road such as emergency roadside
assistance (78%), and trip-by-trip safe driving analysis (60%).

“We live in a world where consumers have grown accustomed to customizing
their purchases and today telematics offers them a solution that not
only improves
driving behaviors but also better informs risk assessments and
customer retention – it’s a huge opportunity for insurers,” said Ryan
McMahon, vice president of marketing at Cambridge Mobile Telematics.
“UBI programs can reduce costs for the driver as well as risk for the
insurance provider so it’s a win/win. Today’s technology makes these
solutions an easy and affordable way to make the roads safer for
everyone.”

Today the top two business values of telematics insurance models, driver
self-selection bias and pricing segmentation advantages, are generally
well understood by insurers and crucial for wide-scale adoption of
telematics-based insurance programs going forward. Embracing Try Before
You Buy programs as both a sales tool and using continuous monitoring
apps to improve driving behavior have already proven to increase
retention and direct financial performance success.

Findings from the full report can be found here.
For more information about Cambridge Mobile Telematics and its
solutions, please visit: https://www.cmtelematics.com/

About Cambridge Mobile Telematics (CMT)

CMT’s mission is to make the world’s roads safer. CMT’s DriveWell
platform measures driving quality, scores driving performance,
incentivizes safer driving, and provides crash and claims services for
insurers, rideshares, and fleets. Since its first product launch in 2012
that pioneered mobile Usage-Based Insurance, CMT has become the world’s
leading mobile telematics and analytics company with its phone-only and
phone+Tag programs. CMT’s award-winning DriveWell platform is used by
leading insurers, commercial fleets, cellular carriers, and other
organizations in more than 20 countries, improving safety for millions
of users. To learn more, please visit www.cmtelematics.com
and follow CMT on Twitter @cmtelematics.

Consumer-facing brands and products have become increasingly focused on
tailored or personalized offerings in recent years in response to
consumer appetite for bespoke services. Today, more than 50% of
customers offered UBI insurance models adopt it, and the vast majority
of American drivers (75%) reportedly would like insurance premiums to be
based on how safely they drive rather than generic factors such as
credit score, demographic information, or vehicle model.

The findings demonstrate that the opportunity for insurers to provide
customized insurance models is ripe – almost two thirds (64%) of drivers
claim to be willing to download a mobile app (like a Try Before You Buy
model) that tracks their driving for a more personalized insurance
quote. Today, there is still room for insurers to capitalize on this
demand since despite consumer appetite just over a quarter (27%) of
respondents have been offered a telematics-informed UBI program. The
total penetration of telematics in the U.S. insurance market remains
less than 10%– the two most popular insurance models are discount based
and pay how you drive programs.

Technological advancements in mobile sensing, IoT and artificial
intelligence today make it possible to deploy new business models and
services at scale, both to prevent
incidents and to respond more effectively in the event of an
emergency. The report finds that the vast majority of consumers are
interested in programs that will keep them and their families safer on
the roads. Over three-quarters (83%) of respondents claim they would be
more interested in an insurance company’s product if it offered tools to
keep their families safer on the road such as emergency roadside
assistance (78%), and trip-by-trip safe driving analysis (60%).

“We live in a world where consumers have grown accustomed to customizing
their purchases and today telematics offers them a solution that not
only improves
driving behaviors but also better informs risk assessments and
customer retention – it’s a huge opportunity for insurers,” said Ryan
McMahon, vice president of marketing at Cambridge Mobile Telematics.
“UBI programs can reduce costs for the driver as well as risk for the
insurance provider so it’s a win/win. Today’s technology makes these
solutions an easy and affordable way to make the roads safer for
everyone.”

Today the top two business values of telematics insurance models, driver
self-selection bias and pricing segmentation advantages, are generally
well understood by insurers and crucial for wide-scale adoption of
telematics-based insurance programs going forward. Embracing Try Before
You Buy programs as both a sales tool and using continuous monitoring
apps to improve driving behavior have already proven to increase
retention and direct financial performance success.

Findings from the full report can be found here.
For more information about Cambridge Mobile Telematics and its
solutions, please visit: https://www.cmtelematics.com/

About Cambridge Mobile Telematics (CMT)

CMT’s mission is to make the world’s roads safer. CMT’s DriveWell
platform measures driving quality, scores driving performance,
incentivizes safer driving, and provides crash and claims services for
insurers, rideshares, and fleets. Since its first product launch in 2012
that pioneered mobile Usage-Based Insurance, CMT has become the world’s
leading mobile telematics and analytics company with its phone-only and
phone+Tag programs. CMT’s award-winning DriveWell platform is used by
leading insurers, commercial fleets, cellular carriers, and other
organizations in more than 20 countries, improving safety for millions
of users. To learn more, please visit www.cmtelematics.com
and follow CMT on Twitter @cmtelematics.